Amidst the widespread panic created by the novel COVID-19 pandemic, when people across the globe are getting laid off, economies are crumbling, and self-quarantines are being enforced by governments all over the world, one might feel it is futile to even think about starting a business! What if your idea might be one of those billion-dollar ideas with huge potential during post-pandemic times?
As per a recent survey conducted by Statista for a group of 3465 consumers, it has been revealed that 20% of them expect an increase in their expenditures on cars and automobiles in the next six months. With carpooling and other vehicle ferrying and cab services going through a downward trend owing to the onslaught of the pandemic, it is little surprise that a good 67% of the consumers anticipated their expenditure to be the same as before. Well, no doubt the global auto industry might not have a good sale of newly manufactured automobiles but there will possibly be a better chance for a rise in the sales of used vehicles in the coming days.
Sale of newly manufactured vehicles may go down
It has been estimated that the impact of the COVID-19 pandemic can result in a loss of 195 million jobs globally. People susceptible to such a downturn and who have already faced the brunt of layoffs would never think of getting themselves locked in indefinite car loans at high-interest rates. Not to mention that even big companies like Tesla have supported the closure of their auto plants in this time of crisis and most of the population around the globe may take a lot of time to recover from the economic fallout caused by the virus.
Should users turn to used cars?
That being said, there is a possibility that people turn to buy and sell used vehicles – for getting rid of old vehicles and get some money on hand or stay safe from the asymptomatic coronavirus cases. According to recent news, China has experienced a surge in the number of such cases despite following drastic lockdown strategies. So, utilization of public transport, trains, and flights will definitely be out of the question for some time.
Nobody wants to be in a situation where they can be potential carriers of the virus and pass it to others. More and more people will prefer to have a personal vehicle that can be bought for a reasonable price without stepping out of their homes and have a seamless contactless buying/selling experience, thereby precluding the need to visit the showroom.
There are enough reasons for users to go for a used vehicle rather than buying a new vehicle now. One of the topmost reasons will be the price. Being a cheaper option, along with the added advantage of lower prices leading to more affordable loans, there are fewer chances of living beyond the means.
Is it a good time to develop an online vehicle marketplace?
Be it during this crisis or in the near future, buying and selling of used vehicles will increase at an exponential rate. It will be an icing on the cake for all startup enthusiasts who want to start a new business or existing businessmen who wish to take their business online.
An online vehicle marketplace will not only allow sellers who want to take the sales of their vehicles through the roof but also give buyers what they need. Buyers will be able to buy vehicles at reasonable prices from any place in the world at any time. By making business easier than ever with the latest technologies, such an e-marketplace solution can free entrepreneurs from the constant need to come up with innovative ideas every now and then.
Last but not least, health is wealth. So, buying and selling of used vehicles must follow the necessary procedures to keep clean the vehicles and disinfect them properly before handing it over to the customers, otherwise, the entire purpose of the business is lost.
The COVID-19 has had a catastrophic effect on the global economy and there seems to be no certainty on when it will be over. However, strong businesses are those which are capable of keeping the ball rolling. Businesses that adapt quickly to changing scenarios are the ones that can survive such unprecedented times. Building an online marketplace for used vehicles will also open a lot of opportunities for the supply chain industry who need armies of delivery agents to reach the customers. So, what are you waiting for? This might be a golden opportunity for transforming your dreams into a reality. If you are interested in this niche, get in touch with our experts who can guide you through and pave the way to build your own online multi-vendor vehicle marketplace solution.